Chapter 1


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Chapter 1

  2. 2. CONTENTS:1. Production Function, Types of Production System, OperationsManagement, PPC2. Forecasting Methods,3. Facilities Location and Arrangements, Factors considered in siteselection4. Product, Process and Capacity Design, Types of process, CapacityPlanning5. Methods, analysis and control, Introduction to time and MotionStudy, Charts, Network Analysis6. Quality Management, Quality Control, X Charts, R Charts7. Maintenance Management, Preventive Maintenance, Maintenance ofsystem reliability8. Inventory management of Materials, ABC Analysis, EOQ, SafetyStock9. Value Analysis, Importance in cost reduction-basic Concepts10. Materials Requirement Planning
  3. 3. Production:Production is the process by which raw materials andother inputs are converted into finished products.Difference b/n Manufacturing and Production
  4. 4. Nature of Production:I. Production As a SystemSystem is understood as a whole which cannot be taken apart.1. Production System:A System whose function is to convert a set of inputs into a set of desiredOutputs. ( Materials , Personnel, Capital, Information)2. Conversion Sub-System:A Sub-System of the larger production system where inputs are converted intooutputs.3. Control Sub-System :A Sub-System of the larger production system where a portion of the output ismonitored for feedback signals to provide corrective action if required.( Quality, Quantity, Cost)
  5. 5. II. Production As An Organisational Function:III. Decision-Making In Production:1. Strategic Decisions: Relating to products, processes and manufacturingfacilities. These decisions have strategic importance for the organisation.( Production Process, Facility Layout, Technology)2. Operating Decisions: Relating to planning production to meet demand. It isnecessary to ensure the ongoing production of goods and services in theorganisation. ( Planning of materials, capacity, Inventory, MaterialsManagement)3. Control Decisions: Relating to planning and controlling operations. Itincludes the day-to-day activities of workers, quality of products, productionand cost. ( Total Quality Control, Productivity of Employees)
  6. 6. Advantage of Production Functions:Shorter New-product lead timeMore Inventory TurnsShorter manufacturing lead timeHigher QualityBetter customer serviceGreater FlexibilityReduced Wastage
  7. 7. Production And Operations Management:Production Management refers to the application of managementprinciples to the production function in a factory. Involves application ofplanning , organising, directing, and controlling to the production process.Operations Management is the process in which resources/inputsare converted into more useful products. Operations are the activities done ina methodically as part of a plan of work to achieve the pre-decided objectives.Operations Management is more frequently used where various inputs aretransformed into intangible services. ( Scheduling work, managinginventories, assessing quality standards…..)
  8. 8. Duties & Responsibilities of Production Managers inManufacturing Organisations:1. Planning the geographical location of the factory;2. Purchasing production equipments;3. Layout of equipments within the factory;4. Product Design;5. Establishing the work standards;6. Capacity Planning;7. Production Planning and scheduling;8. Inventory Management;9. Supply Chain Management;10. Quality Control;11. Industrial Relations;12. Budgeting and capacity planning;13. Monitoring of productivity
  9. 9. Emerging Role of the Production and OperationsManager:1. Strategic Decision making of the company2. Take part in the implementation and use of ERP3. Automate process as per the requirements of the company4. Enhance the R&D5. Reduce Lag in implementation of Projects ( New products, expansionfacilities)6. Develop long-term strategic relationship with supplies by acting as supplychain Managers7. Be an internal quality auditor in quality certification programming ( ISO9000, ISO 14000)
  10. 10. Production Planning & Control:PPC may be defined as the planning, direction and coordination of the firm’smaterial and physical facilities towards the attainment of predeterminedproduction objectives in the most economical manner.Classification of Production Planning & ControlFunctions:1. Materials ( Raw materials, Spare parts , Components)2. Methods3. Machines & Equipments4. Routing ( Flow of work in the plant, temporary storage locations )5. Estimating ( Operations Time)6. Loading & Scheduling ( According to Capacity, Time Table of Production )7. Dispatching ( Authorisation is given for release of materials & tools)8. Expediting ( Follow up or keeping track of progress made)9. Inspection & Evaluating
  11. 11. Factors Determining Production Planning & Control:1. Volume of Production:The amount and intensity of production planning is determined by the volumeand character of the operations and the nature of the manufacturing processes.2. Nature of Production Processes:The production planning may be informal and the development of workmethods is left to the individual workmen who is highly skilled. In highvolume production many product designers, equipment designers, processengineers, and method engineers are involved.3. Nature of Operations:Detailed production planning is required for repetitive operations, andrepetitive batch or mass production of a single standardized product.